Analogic Corporation Awarded Cooperative Agreement by the TSA to Develop Revolutionary Technologies for an Entirely New Generation of Advanced Explosive Detection Systems.

PEABODY, Mass. -- John Wood, President and CEO of Analogic Corporation (NASDAQ: ALOGE), announced today that the United States Transportation Security Administration (TSA) recently awarded Analogic Corporation a cooperative agreement in support of the TSA's Manhattan II project. This important project seeks to identify and support the development of revolutionary technologies into deployable systems that will provide significantly enhanced automatic threat-detection and discrimination capabilities for scanning checked luggage carried on board aircraft and in other applications.

"This award is a strong testament to our past and current programs with the TSA. It is a clear indication that the agency believes in our engineering capabilities and technological leadership, and it further validates Analogic's role as an important resource for them," said Mr. Wood.

Analogic already has received funding under two other grants through TSA's Phoenix program. The first grant was given to Lockheed Martin and Analogic to design and develop continuous performance enhancements for existing explosive detection systems, taking advantage of the significant advances in relevant technology since the first certified Explosives Detection Systems (EDSs) were designed. The second award was a multimillion-dollar grant to Analogic to design an entirely new generation of advanced, networkable EDS systems with significantly higher throughput and detection capabilities than currently deployed systems.

Over the past several years Analogic has supplied more than 525 EXplosive Assessment Computed Tomography (EXACT(TM)) Systems, which are the heart of certified EDS systems that have been purchased by the TSA and installed at a number of airports across the U.S. These systems have also been installed at leading international airports, such as Israel's Ben Gurion Airport, Singapore's Changi Airport, and Italy's Fiumicino and Ciampino Airports.

Analogic Corporation is a leading designer and manufacturer of advanced health and security systems and subsystems sold primarily to Original Equipment Manufacturers (OEMs). The Company is recognized worldwide for advancing the state of the art in Computed Tomography (CT), Digital Radiography (DR), Ultrasound, Magnetic Resonance Imaging (MRI), Patient Monitoring, Cardiovascular Information Management, and Embedded Multiprocessing.